Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

SaaS + Software
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You can achieve Negative Churn, which means you are adding MRR at a faster pace than you are losing it.

InsightSquared

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54% treat upselling and add-on sales as high priority

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

SaaS organizations are now operating in over 100 countries

SaaS IPOs have more than doubled over the last 12 years

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

80% of venture capital investments take place in the enterprise

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

More Growth Strategy Stats

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

80% of venture capital investments take place in the enterprise

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

in 2016, women-led companies received $1.46 billion in investments from venture capitalists. Male-led companies, on the other hand, received $58.2 billion

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

Growing faster has twice as much impact on share price as improving margins

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